One more thing to consider: Cal Grants require you to be a California resident not just when you apply, but continuously throughout your education. If your daughter establishes residency elsewhere for ANY reason, she could lose California state aid if she ever transfers back to a CA institution. Just something to keep in mind for future planning.

As someone who went through this exact situation a few years ago, I can tell you that Colorado will likely be much more expensive than your CA options. My son was accepted to CU Boulder and we're California residents too. Even with his decent Pell Grant, the final cost was about $35K more per year compared to our UC options because of the out-of-state tuition and lack of Colorado state grants. What really helped us make the decision was creating a spreadsheet comparing the total 4-year costs after all aid. Don't forget to factor in higher travel costs for visits home, storage over summers if she can't come back to CA, and potentially higher living costs in Boulder. That said, if your daughter is set on CU Boulder and it has a program that's significantly better than the CA schools, it might still be worth it - just go in with realistic expectations about the financial commitment!

After reviewing all the advice here, I think you've got a good plan of action. To summarize what seems to work best: 1. Identify the specific calculation error (which it seems you have with the 401k rollover issue) 2. Call FSA and request a specialist who handles SAI calculation reviews 3. Be prepared with documentation proving the error 4. Follow up with your school once the SAI is corrected Don't forget to take detailed notes during every call including representative names and call reference numbers. This creates a paper trail that can help if you need to escalate further.

I went through this exact same situation last year and it was incredibly frustrating! In my case, the SAI calculation error was due to the system incorrectly applying the simplified needs test. What helped me was creating a detailed spreadsheet comparing my expected SAI calculation (using the federal formula) versus what the system generated, then highlighting the specific discrepancies. When I called FSA, I had this comparison ready and could point to exactly where their calculation went wrong. The representative was able to see the issue immediately and put in a correction request that got processed within 10 days. Since you've already identified the 401k rollover issue, you're ahead of where I was! Just make sure you have documentation showing it was a rollover (not new income) when you call. Good luck - you've got this!

Good point about the tax documents! Also, something that might ease your mind - the 2025-26 FAFSA will use 2023 tax information, just like the 2024-25 FAFSA. So at least the tax information your daughter already entered will be the exact same for the correct application. The SAI formula might be slightly different, but the base financial information will be identical.

I made this exact same mistake with my son's FAFSA last year! Don't panic - it's more common than you think. Just to add to what others have said, when you do fill out the correct 2025-26 FAFSA in October, make sure to double-check that all the school codes are correct too. I rushed through the second application and accidentally sent it to the wrong campus of his university, which delayed his financial aid package by weeks. Take your time even though you'll be familiar with the process by then!

Thank you everyone for all the helpful responses! I'm feeling a bit better about things now, even though it sounds like I'll still need some loans. I've got these next steps: 1. Wait for my official aid package to see the exact Pell Grant amount 2. Follow through with my financial aid office appointment next week 3. Look into Michigan-specific grants 4. Apply for work-study and campus jobs 5. Search for private scholarships I definitely have more research to do but this gives me a starting point. I appreciate all the advice!

Good luck with your financial aid journey! Just wanted to add that you might also want to check if your state university has any merit-based scholarships you could still apply for, even with the semester already started. Some schools have rolling scholarship applications throughout the year. Also, if you're planning to work while in school, many on-campus jobs are really flexible with student schedules and some even let you study during downtime. The combination of everything you listed should definitely help reduce your loan burden significantly!

This thread is such a lifesaver! I've been pulling my hair out over this exact issue for the past two days. The FAFSA interface is so confusing - it's like they designed it to be as unclear as possible. I'm a first-generation college student and my parents have never dealt with this before, so we had no idea what to do when the system kept asking for tax info we don't have. Reading through everyone's solutions here gives me hope that I can actually get this done. Going to try the "Will not file" option with my W-2 info tonight. Fingers crossed!

As someone who works in financial aid, I want to emphasize something important that hasn't been mentioned yet: make sure you're consistent with whatever option you choose! If you select "Will not file," don't accidentally submit a tax return later without updating your FAFSA. This can trigger verification issues. Also, keep copies of all the W-2s and income documents you use for your estimates - you'll likely need them if your school selects you for verification. The key is being accurate with whatever information you do have, even if you don't have a completed tax return.